In Determining the Effectiveness of an Entity's Policies and Procedures

question 42

Multiple Choice

In determining the effectiveness of an entity's policies and procedures relating to the existence or occurrence assertion for payroll transactions, an auditor most likely would inquire about and:

• A)observe the segregation of duties concerning human resource responsibilities and payroll disbursement.
• B)inspect evidence that all prenumbered payroll checks are accounted for.
• C)recompute the payroll deductions for employee fringe benefits.
• D)verify the preparation of the monthly payroll account bank reconciliation.

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Definitions:

Customer Order Fulfillment

The process of completing a customer's order and ensuring delivery as requested.

Product Preparation

The process of getting goods ready for sale, which may involve assembly, cleaning, or packaging.

Ownership Transfer

The process by which the legal rights of possessing or controlling an asset or property are moved from one entity to another.

Supply Chain Strategy

An approach a company adopts to manage and optimize its supply chain operations, focusing on efficiency, cost reduction, and customer satisfaction.